New DN-404 Token Launched An Alternative Solution To ERC-404

A group of crypto developers has launched an alternative solution to the experimental ERC-404 token standard, aiming for the same functionality but with reduced impact on Ethereum transaction fees.

Introducing DN404: a solution to the critical issues arising from the newly popular “ERC404” tokens.

Huge shoutout to the all-star team who has worked around the clock for days to make this a reality:@0xQuit@0xCygaar@optimizoor@0xjustadev@PopPunkOnChain@AmadiMichaels

And…

— quit.q00t.eth (👀,🦄) (@0xQuit) February 12, 2024

Launched in early February by Pandora, ERC-404 aimed to combine ERC-20 tokens and ERC-721 NFTs, enabling users to split and merge NFTs (fractionalization) with relative ease. 

While innovative, the approach caused a surge in Ethereum transaction fees, prompting concerns about its real-world usability.

The alternative DN-404, recently released on February 12, aims to improve on this. Launched by developers “cygaar” and “quit,” it promises a 20% reduction in transaction fee impact. 

Excited to launch the “Divisible NFT” standard (DN404) which aims to be a hybrid ERC20/721 token.

ERC404 took the crypto world by storm over the past few days, but it doesn’t follow existing standards, is inefficient, and breaks at certain edge cases.

Here’s how DN404 works 🧵: pic.twitter.com/3kj504Gb97

— cygaar (@0xCygaar) February 12, 2024

Their key difference lies in the contract structure. 

While ERC-404 attempts to merge NFT and token functionality into a single contract, DN-404 utilizes two separate contracts: a standard ERC-20 token and a mirrored ERC-721 NFT. 

This split approach, the developers argue, mitigates potential security risks and adheres to established standards, ultimately streamlining the process.

However, there are caveats. The DN-404 code remains unaudited, meaning there are inherent risks involved. 

Additionally, unlike ERC-404, the developers haven’t yet deployed their version in an actual token-NFT hybrid project.

While “quit” acknowledges the experimental nature of their creation, they see it as a response to the community’s interest in utilizing the core ERC-404 concept. 

Their goal is to offer a more efficient and secure implementation for those exploring this innovative token-NFT combination.

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